Safe-haven gold surpassed the key $3,200 mark for the first time on Friday, spurred by a weaker dollar and economic concerns due to an intensifying trade war.

Spot gold jumped over 1.3% to $3,216.27 an ounce after hitting a record high of $3,219.84 earlier in the session. Bullion is up over 5% so far this week. U.S. gold futures climbed 1.7% to $3,230.60.

“Recession risks are mounting, bond yields are soaring, and the U.S. dollar continues to weaken – all factors reinforcing gold’s role as a crisis hedge and inflation shield,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.

Beijing increased its tariffs on U.S. imports to 125% on Friday, hitting back against U.S. President Donald Trump’s decision to hike duties on Chinese goods to 145%, raising the stakes in a trade war that threatens to upend global supply chains.

Global stocks fell and the dollar tumbled. A lower dollar makes greenback-priced bullion cheaper for overseas buyers.

Spot gold has continued its blazing rally from the last year, hitting multiple record highs and gaining nearly 21% so far this year driven by uncertainties, central bank demand and increased flows into gold-backed exchange-traded funds.

“We believe gold has further to run - in the upside case, we target USD 3,400-3,500/oz over the months ahead,” said UBS analyst Giovanni Staunovo.

Data on Thursday showed U.S. consumer prices unexpectedly fell in March.

Traders now bet that the Fed will resume cutting rates in June and probably reduce by a full percentage point by the end of 2025.

Spot silver gained 0.9% to $31.46 an ounce, while platinum shed 0.4% to $934.60. Palladium jumped 1.6% to $922.68.